Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Range-bound formation persisted and neither buyers nor sellers were willing to quote price levels.
- In the futures market, traders took a cautious stance.
Successive attempts by Solana [SOL] bulls breaking out of the compact price range have not produced the expected result. The latest bullish rejection on the range-high kept SOL moving sideways between $22.4 and $25.3.
Read Solana’s [SOL] Price Forecast 2023-24
Bitcoin tracking [BTC] descending below $29k, SOL quickly dropped from the high range. However, the price of SOL immediately recovered due to a combination of the bullish order block (OB) and support level.
If SOL’s recent price precedent is to be followed, bulls will make another attempt for the high range ($25.3). Nevertheless, bears could take advantage of the bearish market sentiment to reverse the $22.4 support level.
Bulls and bears refuse to give up their respective price levels
Source: SOL/USDT on trade view
The recent price rejection at the $25.3 resistance caused the Relative Strength Index (RSI) to drop below the neutral 50. However, it recovered as of writing to highlight mounting buying pressure for Solana. On the other hand, On Balance Volume (OBV) fell over the past 48 hours and has not yet shown any signs of recovery.
A look at the price chart in the 12-hour time frame showed that the price battle between buyers and sellers has been going on for almost a month. After sellers successfully flipped the $25.3 level to resistance on July 22, bulls have resolutely defended the $22.3 support level.
While bulls have refused to give up on the support level, bears have also turned the $25.3 price level into a stronghold, rejecting multiple bullish escape attempts. This oscillating price action has limited the price movement of SOL on the higher timeframes, with traders waiting for a clear market trend.
If bulls successfully move back to the high range, a close above the level will provide further upside at the $29-$32 price level. Alternatively, bears flipping the $22.3 support level could see sellers aim for the price range from $18-$20.
Tight margins on the futures market
Source: Mint glass
The exchange long/short ratio usually serves as a good indicator of the direction speculators believe the market will move next. In Solana’s case, the long/short ratio remained solidly neutral, with neither longs nor shorts having a significant advantage.
How much are 1, 10 or 100 SOL worth today?
This indicated that speculators are taking a cautious stance in anticipation of a breakout from the price range.